Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. I refer to Treasury modelling of GST changes, including an increase of the GST rate to 15 per cent. Can the minister confirm that Treasury modelling shows an increase of the GST rate to 15 per cent would deliver additional revenue of $32.5 billion in 2017-18?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As I advised the Senate yesterday, the government has not made a decision to increase the rate of the GST. We are on the public record, and have been on the public record for some time, saying that we have been modelling some options at the request of state and territory governments including, and in particular, the good friend of Senator Conroy: the Labor Premier of South Australia, Jay Weatherill. There is no news in any of this, because this government is focused on how we can make our tax system more growth friendly, to help facilitate stronger growth and more jobs. We started that process on coming into government by getting rid of Labor's job-destroying carbon tax, by getting rid of Labor's job-destroying mining tax, and by encouraging small business to employ more Australians by providing a company tax cut for small business.

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock.

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. It is on direct relevance to the particular question. The specific question was not about whether there was modelling; it was whether the modelling showed an additional revenue of $32.5 billion in 2017-18. It was quite direct.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you Senator Moore. I will point out the question to the minister and will advise the minister he has one minute and 11 seconds in which to answer.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As I have clearly indicated to the chamber, the government has made no decision to increase the rate of the GST. As such, the question is quite irrelevant.

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I am going to persist with this matter. I refer to Treasury modelling of an increase of the GST rate to 15 per cent and an expansion of the base to include food, water and sewerage. Can the minister confirm that Treasury modelling shows that this tax hike would deliver additional revenue of $45 billion in 2017-18?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As I have indicated to the chamber on a number of occasions now, the government has not made a decision to increase the rate or broaden the base of the GST, so I refer to my answer to the previous question.

Senator Wong interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

He has concluded his answer, Senator Wong.

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a final supplementary question. Can the minister confirm that Treasury has been asked to model further GST changes, including an expansion of the GST base to include health and education?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As I indicated in my first answer, in good faith—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. The minister is taking less than 15 seconds to answer his question, so there is not much time to take the point of order. The questions are very specific. The questions go to Treasury modelling; they are not about a government decision. We are asking him to confirm Treasury modelling. To dismiss the question and to dismiss your advice is, again, a reflection on the minister. I ask you to bring him back to the question that has actually been asked.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Conroy. I will remind the minister of the question. He has 55 seconds in which to answer.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I would say to Senator Conroy and everyone who is listening to this answer that I clearly confirmed in my primary answer, which is what I referred to in the first five seconds of my answer to the supplementary question, that Treasury did indeed conduct modelling at the request of state and territory governments, including the very good friend of Senator Conroy the Labor Premier of the great state of South Australia. This is not a secret. This has been long established. I think the Treasurer referred to this as part of the fact-finding. The important point here is that the government has not made a decision to increase the GST and, as such, this is just academic.